The defunct cryptocurrency exchange FTX has submitted an initial plan of reorganization, which calls for the "reboot" of an offshore exchange that is accessible to consumers outside the US.
The Bankruptcy Administrator FTX Suggested Forming a New Business
The defunct cryptocurrency exchange FTX has submitted an initial plan of reorganization, which calls for the "reboot" of an offshore exchange that is accessible to consumers outside the US.
Users of the offshore exchange FTX.com are categorized as "dotcom customers" under the plan, whereas users of the US-based FTX are categorized as "US customers."
The proceeds from a pool of assets connected to the FTX.com exchange will be distributed according to the pro rata portion of each holder of a dotcom customer entitlement.
The bankruptcy administrator suggested forming a new business with outside investors to run an offshore platform that would be "rebooted" but inaccessible to US investors. As an alternative, it might engage in a merger or comparable transaction.
FTT claims, according to the statement, "will be canceled and extinguished as of the Effective Date and holders will not receive any distribution." Claims from non-customers, such as those for fines and taxes imposed by regulations, would take a back seat.
